A former accountant has admitted he lied to investigators during a probe of his hedge fund clients.

Bryan Polozola, a former audit partner at BDO USA, denied knowing that a former employer he was accused of stealing almost $50,000 from had been repaid during testimony to the Securities and Exchange Commission. But, according to the criminal information against him, Polozola knew perfectly well that his lawyer had made the payment—and that the lawyer had done so on Polozola's orders and with Polozola's money.

Polozola was accused of taking the money in a 2005 National Association of Securities Dealers proceeding; he neither admitted nor denied guilt but did consent to be barred from associating with NASD-registered firms.

"This guilty plea is a stark reminder that those who lie in SEC investigations will face an SEC committed to working closely with the criminal authorities to ensure that they are held accountable," SEC enforcement chief Robert Khuzami said.

Polozola was fired by BDO in September. The Richardson, Texas, man faces up to six months in prison when he is sentenced in March, as well as a $5,000 fine.

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information.